TMI Blog2007 (9) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... is, I am of the view that the impugned order at Annexure ‘P’ is in violation of the Principles of Natural justice inasmuch as on the date when the order was passed on 23-6-2005, the petitioners had purchased and had come into possession of the property in question. Consequently, the impugned order at Annexure ‘P’ dated 23-6-2005 is liable to be quashed and accordingly it is quashed.The matter stands remitted to the Competent Authority to consider the case afresh. - 764 of 2006 (GM-Res) - - - Dated:- 12-9-2007 - Ajit J. Gunjal, J. REPRESENTED BY : S/Shri Gururaj Joshi, Narendra Gowda and R.S. Ravi, Advocates, for the Appellant. Shri Arvind Kumar, ASG, for the Respondent. [Order]. The short question which is required to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice was issued to respondents 3 and 4 under Section 6(1) of the Act on 8-12-2003. But however, respondents 3 and 4 did not choose to enter appearance or file objections. A second notice was issued on 21-4-2004 asking the 3rd respondent to file her reply on or before 4-5-2004. But however, the 4th respondent came forward and made a request for extension of time pursuant to a communication dated 26-5-2004. But however, it appears on the said application no order was passed. The 3rd notice was issued on 2-6-2004 asking the 3rd respondent to appear before them on 14-6-2004. The 4th respondent sought for further extension of time pursuant to his representation dated 19-6-2004. Eventually, the Competent Authorities issued the first of the summ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by the said forfeiture, they have questioned Annexure P in this writ petition. 3. Mr. Gururaj Joshi, learned counsel appearing for the petitioner vehemently submitted that the petitioners being bona fide purchasers for value were required to be heard before any order of forfeiture is passed under Section 7 of the Act. He would stress that under Sub-section (2) of Section 6 of the Act, the petitioners being classified as any person holding the property on behalf of such person are entitled for notice. According to him, the petitioners having purchased the property would certainly step into the shoes of respondents 3 and 4 and are entitled to defend the purchase of the property. Indeed he submitted that the petitioners are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... open for them to show that the acquisition of the property was not from the amount, which was seized under the COFEPOSA Act but was from independent income of respondents 3 and 4. 6. I have given my anxious consideration to the submissions made by the learned counsel appearing for the parties. 7. Before considering the rival submissions, it is necessary to notice certain provisions of the Act. The Act was promulgated and came into force on 25th January 1976. The object and reason for enacting this special enactment was for effective prevention of foreign exchange manipulations, which was having deleterious effect on the National Economy. Indeed the object of enactment was to prevent augmentation of such gains by violation of several pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any holder under sub-section (2)(e) of Section 2 and any person under sub-section (2) of Section 6 of the Act are synonyms. 11. To my mind, the petitioners would fall under the category of any holder as contemplated under sub-section (2)(e) of Section 2 and if it is read in tandem with sub-section (2) of Section 6 of the Act, they would be classified as persons, who are interested in the proceedings only so far as to avoid the forfeiture of the property. 12. As contended by Mr. Arvind Kumar, learned Assistant Solicitor General appearing for respondents 1 and 2 that under Section 11 of the Act, certain transfers are to be treated as null and void. It is no doubt true that the first of the notice was issued to respondents 3 and 4 on 2- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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